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8 A pension fund manager is considering three mutual funds. The first is a stock...

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8 A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bil money market fund that yields a sure rate of 5.5%. The probability distributions of the risky funds are 5 Stock tund 5) Bond fund Expected Retur 151 Standard deviation 324 230 The correlation between the fund returns is 0.15 a. What would be the Investment proportions of your portfolio if you were limited to only the stock and bond funds and the portfolio has to yield an expected return of 12%? Investment Proportions Stocka Bonds b. Calculate the standard deviation of the portfolio wnich yields an expected return of 12% (Do not round Intermediate calculations Round your answer to 2 decimal places.) Standard deviation

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